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Three months ago, Bank X issued an $ 80 million, one-year maturity CD denominated in euros. On the same date, $ 40 million was invested in a euro-denominated loan and $ 20 million in a U.S. T-bill. The exchange rate on this date was 0.77euros/$. Assume no repayment of principal and an exchange rate today of 0.74euros/$. What is the current value of the CD principal ? What is the current value of the euro-denominated loan principal (in euros and dollars) ? what is the current value of the U.S. T-bill (in euros and dollars ) ? What is the bank's profit/loss from this transaction?

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Category:- Basic Finance
Reference No.:- M941589

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